If a company has a trial balance that does not balance, what is the first step to identify the error?
Practice Questions
1 question
Q1
If a company has a trial balance that does not balance, what is the first step to identify the error?
Recalculate the totals
Check for missing entries
Review the journal entries
Verify account balances
The first step to identify the error in a trial balance that does not balance is to recalculate the totals to ensure that the addition was done correctly.
Questions & Step-by-step Solutions
1 item
Q
Q: If a company has a trial balance that does not balance, what is the first step to identify the error?
Solution: The first step to identify the error in a trial balance that does not balance is to recalculate the totals to ensure that the addition was done correctly.
Steps: 5
Step 1: Look at the trial balance and find the total for the debit column.
Step 2: Look at the trial balance and find the total for the credit column.
Step 3: Add up all the numbers in the debit column carefully to make sure they are correct.
Step 4: Add up all the numbers in the credit column carefully to make sure they are correct.
Step 5: Compare the total of the debit column with the total of the credit column to see if they match.
